Shadowfax IPO Plans – Logistics Startup Gears for Market

Logistics startup Shadowfax has initiated its draft red herring prospectus (DRHP) filing with SEBI through a confidential process, as detailed in public notices released in newspapers on July 1. This IPO filing follows closely on the heels of the company’s transition to a public entity just three months prior.

The firm aims to secure Rs 2,000–2,500 crore by means of a combination of a fresh issue and an offer for sale (OFS) by current shareholders, which include Flipkart, Eight Roads Ventures, and NGP Capital.

ICICI Securities, JM Financial, and Morgan Stanley are acting as advisors for this public issue.

Valuation and Market Positioning

Shadowfax is pursuing a post-issue valuation ranging between Rs 5,500–6,000 crore as it seeks to assess the appetite of public markets while keeping specific business details confidential for the moment. Various sources, including startup data intelligence platforms, indicate that the company’s value was estimated at approximately Rs 5,981 crore or $712 million during the first phase of its Series F funding round in February of this year.

Company Background and Operations

Founded in 2015 by Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra, and Gaurav Jaithliya, the Bengaluru-based company specializes in last-mile delivery services predominantly targeting e-commerce and hyperlocal logistics. It claims to have over 1.25 lakh monthly active delivery partners across various categories including grocery, food, and medical deliveries.

Funding and Financial Performance

According to numerous sources, Shadowfax has attracted around $246 million in funding thus far, with Eight Roads Ventures identified as the largest external stakeholder, followed by Flipkart, NewQuest Asia, and Nokia Growth Partners.

While the financial results for FY25 are still pending, the company reported a revenue of Rs 1,885 crore for FY24, representing a year-on-year growth of 33.2%. Additionally, it succeeded in reducing its losses by 91%, bringing them down to Rs 11.8 crore in FY24 compared to Rs 142 crore in FY23.

Upcoming Market Entrants

A number of Indian startups, such as Physics Wallah, boAt, Urban Company, Shiprocket, Groww, Pine Labs, Capillary Tech, Wakefit, and Curefoods, have also submitted their draft red herring prospectuses (DRHPs) and are preparing for stock market launches in the near future. Similar to Shadowfax, companies like boAt, Shiprocket, Groww, Aequs, and Physics Wallah have opted for the confidential route for their IPO applications.